THE BOMBAY LABOUR WELFARE FUND ACT 1953

 

An Act to provide for the constitution of a fund for the financing of activities to promote welfare of labour in the state of Maharashtra. This Act constitutes a board called Maharashtra Labour Welfare Board which looks after the duties assigned to it in relation to Labour Welfare Fund i.e. LWF   

 

APPLICABILITY:

·         It is applicable to the whole  of Maharashtra

·         It is applicable to a factory, tramway or motor transport service or establishment under Maharashtra Shops Act, employing five or more workmen located in such area to which the Act is made applicable by the notification of the Government

·         Even though the number of employees falls below five, the establishment is remain covered under the Act

·         Every employee, including employee through contractor, but not a managerial capacity or supervisor capacity drawing more than 3500/- pm.

 

 

SECTION 3: WELFARE BOARD

·         Labour Welfare Board consist of:

(a)              Fines from employees

(b)              Unpaid accumulations

(bb)         Penal Interests

(bbb)     Contribution paid under Section 6BB

(c)               any donation

(d)              any fund transferred under Section 7

(e)              any sum borrowed under Section 8

(f)                any loan, grant in aid, subsidy by the State Government

 

UNPAID ACCUMULATION 

·         If an Employee's wage is unpaid due to any reason and such amount is not claimed by such employee or any of his Legal Heir (in case of his death) within the period of three years  from the date on which it became due then employer needs to deposit such unpaid accumulations to the Maharashtra Labour Welfare Board as mentioned in Section 2(10) read with Section 3(1) & Section 6A of the Bombay Labour Welfare Funds Act, 1953

 

·         In this regard, the liability in respect of aforesaid accumulation shall be deposited to the Maharashtra Labour Welfare Board in Cheque / Demand Draft along with the statement of unpaid accumulations in the below format (payment due to the employees but not made to them within a period of three year from the date on which they became due):

 

·         If there is no unpaid accumulation as defined under Section 2(10), no such amount is required to be deposited and therefore no relevant statement of unclaimed accumulation is required to be submitted to the Board

 

 

CONTRIBUTION

1.      By employer, employees and State Government

2.      Payable every six months in respect of every employee and employees at the following rates

·         In respect of employee whose name stands on the register of the establishmen as on 30th June, 1993 and  on every 31st December and 30th June

i)       Employees drawing wages upto and inclusive of Rs 3000 - Rs 6000

ii)     Employees drawing wages exceeding Rs 3000 - Rs 12000

·         In respect of employer for employees referred above, thrice the amount payable by them

Employer to pay contribution before 15th day of July and 15th day of January to the Board by cheque, money order or in cash

 

PENALTY

1.      Person willfully obstructing an inspecor from discharging his duty or exercising his power under the Act and failed to produce records or other documents on demand is punishable for :

·         1st Offence , imprisonment for a term which may extend to 3 months or fine upto Rs 500or both

·         for subsequent offence imprisonment for a term which may extend to 6 months or fine upto Rs 1000 or both